US lifts curbs on Mexican airlines after aviation dispute

By Reuters News
Planes of Mexican low-cost carriers Volaris and Viva Aerobus sit on the tarmac at Mexico City International Airport Benito Juarez, in Mexico City, Mexico, October 10, 2026.  REUTERS/Luis Cortes

- Mexican airlines will be able to launch new flights to the US from Mexico City's two international airports after the US Department of Transportation lifted restrictions imposed over aviation disputes between the two countries, Mexico's government said on Friday.

The decision allows airlines to establish routes to the US from Mexico City's Felipe Angeles International Airport (AIFA) and Benito Juarez International Airport, according to a statement from the ministries of foreign affairs and communications and transportation.

The US Department of Transportation said the move reflected steps taken by Mexico to address concerns over its compliance with a 2015 bilateral air transport agreement.

The department said it would continue to require Mexican carriers to file schedules for flights to and from the US and obtain approval to operate services using large aircraft.

A US official said two other orders related to the dispute remain in place and that Washington would closely monitor Mexico's compliance with its commitments.

The official said the decision was separate from an ongoing Federal Aviation Administration review of Mexico's aviation oversight efforts conducted in August.

The FAA restored Mexico's top air safety rating in September 2023, allowing Mexican airlines to expand existing US routes and launch new services. Mexico had been downgraded in May 2021 after the US regulator found the country did not meet international aviation safety standards.

The downgrade was a major blow to Mexican carriers, as US airlines were able to scoop up market share.

In May, US Transportation Secretary Sean Duffy said the Mexican government had agreed to improve aviation access to Mexico City.

President Donald Trump's administration had reached an agreement with Mexico on a plan to address US concerns over its compliance with a 2015 air transport agreement between the two countries, Duffy said.

In October last year, the US froze the expansion of Mexican airlines' passenger and cargo services from the two airports, alleging Mexico had not complied with the bilateral aviation agreement since 2022, when it rescinded slots held by US passenger airlines and forced US all-cargo carriers to relocate operations.

Mexican airlines welcomed Friday's decision. Carriers Viva and Aeromexico AERO.MX said it would strengthen air connectivity between the two countries.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.